AUD/JPY: Significant Breakout at Horizontal Resistance

• AUD/JPY has been bullish on the H4 chart.
• The pair made a significant bullish breakout at a horizontal resistance.
• The H1 chart looks bullish.
• Intraday minor charts have been very bullish.

AUD/JPY- Technical Analysis-H4 Chart

The H4 chart of AUD/JPY demonstrates a bullish trend, with repeated bounces around 93.550 and a significant breakout above horizontal resistance at 94.935. Currently, the pair is trading above this resistance, making it an attractive option for buyers seeking long positions from value areas. The Simple Moving Average 30 is acting as a support level, potentially drawing more buyers into the market. The next notable resistance for the pair appears to be around 95.750.

On the flip side, sellers may have to exercise patience as the pair lacks strong bearish momentum or reversal patterns at the moment. A bearish reversal scenario would likely involve a breakout below the SMA 30 to establish a bearish outlook. As of now, the H4 chart suggests a predominantly bullish stance, making it essential for traders to monitor price action closely for potential long opportunities.

Price Action Analysis-H1 Chart

The H1 chart of AUD/JPY reveals a consistent uptrend, characterized by adherence to an ascending trendline. This trendline has repeatedly acted as a support level, facilitating the creation of new higher highs. During the most recent bounce, a bullish engulfing candle formation signaled a rapid upward movement. Currently, the intraday resistance appears to be around 96.320.Buyers might consider waiting for price consolidation and the emergence of bullish reversal patterns at value areas before entering long positions. The next notable resistance level is projected at approximately 95.670.

Conversely, sellers are currently facing a challenging environment to initiate short positions in the pair. While intraday minor charts may present some short-term opportunities, selling AUD/JPY, even on these smaller timeframes, carries increased risk. The overall sentiment on the H1 chart remains bullish, underscoring the importance of cautious analysis and consideration of long positions for traders.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn